Just released.... good newsLounge Lizard Exploration...

Just released.... good news

Lounge Lizard Exploration Update
Kagara is pleased to announce results of exploration drilling completed at the Lounge Lizard nickel
deposit in the Forrestania region of Western Australia. The Lounge Lizard deposit lies immediately
along strike of the Flying Fox nickel deposit currently being mined by Western Areas NL (WSA).
Since August, a drilling program aimed at testing the potential of the disseminated nickel
mineralisation intersected at Lounge Lizard by previous explorers has been in progress. The drilling
has concentrated on an area extending 200 metres south of the WSA tenement boundary and has
intersected substantial thicknesses of disseminated sulphides including massive sulphides on the basal
ultramafic/metasediment contact over a minimum strike length of 160 metres. The thickness and
continuity of the massive sulphides appears to be increasing with depth.
Of the twelve holes drilled, assay results have been received from five holes with the better
intersections highlighted below.
Hole No Intersection
LLDN001W1W1 7.11 metres at 2.20% nickel, including 3.19 metres at 3.6% nickel
LLDKN001W1W1W1 38.46 metres at 0.67% nickel, including 10.66 metres at 1.15% nickel
LLDKN001W3 27.64 metres at 1.30% nickel, including 3.21 metres at 5.1% nickel
Hole LFPD0025W2W1W1W2 Intersected 33.70 metres of disseminated and blebby nickel sulphides
together with 1.2 metres of massive sulphides on the basal contact. This hole visually appears to be
the best drilled so far in the current program and assay results are expected early in the new year.
The holes LLDKN001W3 and LFPD0025W2W1W1W2 are located 110 metres apart and are interpreted to
represent the top to a massive nickel sulphide system open down dip and along strike to the south.
Disseminated sulphides have been intersected over a minimum down dip extent of 500 metres and EM
surveys have indicated that strong conductors believed to be caused by massive sulphides exist along
strike of the sulphides. The long section shows the Lounge Lizard mineralisation open at depth.
Drilling by WSA indicates a displacement of the mineralisation could be expected at depth. The
current drill program will test this position along with shallower targets in the coming three months.
The exploration program at Lounge Lizard is aimed at defining the size of the disseminated nickelsulphide
system together with any massive sulphides accumulation at the basal contact.
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There remains a further 1.2 kilometre strike within Kagara’s tenement to be tested south of the
current drilling. Access to this area is dependant on environmental clearances which are expected to
be obtained within the next two months. In the interim, drilling will concentrate on further testing of
the nickel sulphide mineralisation intersected at Lounge Lizard.
The T1 position was tested by three holes, approximately 100 metres south of the tenement
boundary. Stringer sulphides were intersected but the potential appears limited.
KIM ROBINSON
Executive Chairman